Warning for Lloyds, Halifax, Santander customers over £500 payments | Personal Finance | Finance
Bank customers tempted by the latest switch offer may want to keep an eye out for other cash incentives. Barclays is currently paying up to £900 if you switch to an account with them. Finance experts now predict that other big-name banks could soon follow suit with their own switch offers.
Aaron Peake, personal finance expert at free credit score service CredAbility, said: “Barclays’ new switching deal of up to £900 is one of the biggest we’ve ever seen in the UK. It’s likely to shake things up across the high street and could spark a wave of new offers from other big-name banks looking to stay competitive.
“When one major bank launches a generous reward, rivals often respond quickly with their own version, especially in the run-up to Christmas when people are watching their spending more closely.” Lloyds Bank is currently offering £200 when you switch to them, while TSB is paying £180 to new customers moving over to them.
Mr Peake said: “While other banks may not match the full £900 straight away, we could see offers creep up from the usual £100 to £300 range to around £500, as they try to attract customers who are tempted by the size of Barclays’ deal.
“The timing is clever too, as it plays into a period when households are reassessing their finances and looking for quick wins to boost their balance.” However, he encouraged customers to think things through before switching banks.
He warned that some switch offers have specific conditions. With the Barclays incentive, you need to open your account in the app. You can go for either a Barclays Bank Account but you’ll need to sign up for Blue Rewards, which costs £5 a month; or you can go for a Premier account, which means you will need a gross income of £75,000, or have a total balance of at least £100,000 in savings with Barclays.
Mr Peake said: “When weighing up whether to switch, consider how you actually use your bank account. If you regularly dip into your overdraft, look for one with lower fees or a longer interest-free buffer.
“If you like to save, check whether the new bank offers linked savings accounts or cashback on bills. And if you travel a lot, perks like fee-free spending abroad could be worth more than a one-off cash reward.”
He also warned that when you switch accounts, this can impact your credit score. The expert said: “Each new application involves a check on your credit file, and too many in a short space of time can make lenders think you’re reliant on incentives rather than managing your money steadily. That’s why it’s smart to check your credit report before you apply, so you know where you stand and can spot any issues early.”
